I wonder how they’re going to generate additional sales between now and mid 2023 if people who sign up now are stuck with the v1 hardware,
@Volusiano: I’m still trying to figure out where the cash is going to come from to pay dividends with an appropriate risk premium for this venture. Edit Who’s going to pay big bucks to acquire this “flash-in-the pan” startup that can’t even keep its insipid website up to date? And an IPO? Who will want shares in such a company?
Initially, I couldn’t make sense of Whisper’s business model. The free hardware and software generated a decent value proposition for the device user, but not for the shareholders.
Later on, my mind began to come around to the notion that Whisper was the classic “evergreen” business model with a cash flow extending into perpetuity, an ever-expanding customer base, and - like AT&T - a growing inventory of company-owned and controlled plant and equipment (brains and earpieces) robust enough to serve traffic consisting of increasingly complex network “traffic” (i.e. sound processing algorithms) for a number of years, requiring only periodic refurbishment (software upgrades) rather than complete replacement [replacing all Velox-platformed equipment (to use Oticon products simply for illustration ) with Polaris- based units through a program of enforced obsolescence].
I saw ROI as a function of a growing revenue stream sitting atop a business model requiring fewer and fewer capital costs to generate said revenue stream. The gap between revenues and operating costs could be made ever-wider, this ensuring a generous profit margin for the investors. It all seemed to make sense…
Thus, so framed in my mind, it all began to conform to reason: a perfect, evergreen profit-generating model. But now, sans subscription fees, sans Brains with longevity, sans rapid software enhancement rollouts, and sans the previous reassurance that early adopters would be protected from premature obsolescence, what kind of value proposition does Whisper now present to its target market - or to its investors (both existing and potential)?
So. I’m boggled again, and looking - not for spin - but a business rationale that will hold water and withstand the rigours of the marketplace - and cut me a dividend cheque!